Striking workers at aerospace giant Boeing Co., Chicago, will vote Oct. 23 on a new contract proposal from the firm that will provide, among other things, an increase in the company's 401(k) match to 100% (up from a prior offer of 75%) of the first 8% contributed, in addition to a special guaranteed company retirement contribution of 4%.
The proposal also calls for a 35% general wage increase spread over four years (12% in the first year, 8% in the second year, 8% in the third year and 7% in the fourth year), the reinstatement of the Aerospace Machinists Performance Plan, with a guaranteed minimum annual payout of 4%, said a news release issued Oct. 19 by the International Association of Machinists and Aerospace Workers.
Boeing's prior offer called for a 25% general wage increase over four years.
More than 33,000 members of the IAM at Boeing facilities in Washington state, Oregon and California have been on strike since Sept. 13.
The proposal also calls for a one-time $5,000 contribution to each participant in the $72.2 billion Boeing Co. 401(k) Retirement Plan; an increase in the multiplier benefit for the $48.9 billion the Boeing Company Employee Retirement Plan, a pension plan, to $105 for vested employees (up from $95); and a one-time ratification bonus payment of $7,000 (up from a prior offer of $3,000).
Boeing said in a statement that "we look forward to our employees voting on the negotiated proposal."
On Sept. 12, the union rejected Boeing’s initial contract offer, which provided for a 25% wage increase, leading to the work stoppage.
Bloomberg reported that union negotiators are not endorsing the contract proposal as it does not restore the company pension fund.
The Boeing Company Employee Retirement Plan has been frozen to benefit accruals since Oct. 31, 2016, after being closed to new hires since Jan. 3, 2014.
Bloomberg contributed to this story.
